Is Cash Tangible Property for Gift Tax?

Offshore Tax with HTJ.tax · Apr 18, 2026 · 1m

This is one of the most misunderstood areas in cross-border planning. The answer is:👉 Yes—but with an important twist.💵 1️⃣ Is Cash Tangible Property?Under Internal Revenue Code principles:• The IRS generally treats cash as tangible personal property👉 This means:• In theory, it can fall within the U.S. gift tax net for non-resident aliens (NRAs)🌍 2️⃣ The Critical Factor: Location (Situs)For gift tax purposes, what really matters is:👉 Where the cash is located at the time of the transfer📍 Two Different OutcomesCash in the U.S.:• Physically located in the U.S. • Gift by an NRA → subject to U.S…